This manual provides a basic guide to wage and salary administration at smaller institutions of higher education--institutions with 400 or fewer full-time nonacademic employees and a relatively uncomplicated administrative organization. Emphasis is placed on definitions and benefits of the process, assigning responsibility and authority, deciding which jobs are to be evaluated, determining the evaluation approach, establishing compensation policy, and assuring program maintenance and review. Appendices include a government bulletin on equal pay, a job classification plan, job description questionnaire form, sample of a description of duties, summary of grade levels and pay scales at a sample institution, sample class specifications, definitions of terms, and a bibliography. (MJM)